2024 (8) TMI 603

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....held as follows:- (i) Demand of Rs.11,76,887/-, Rs.2,07,424/- & Rs.10,86,280/- (Sl.No.1 to 3 of the above table): The main issue for decision before me is whether the appellants as recipient of the instant services/services in respect of transactions made with the foreign parties re (services used in or in relation to promotion or marketing the appellant's final goods) were liable to pay service tax during the relevant period. I find that Rule 2(1)(d)(iv) of the Service Tax Rules, 1994 under which a recipient of service in India became liable to pay service tax in relation to any taxable service provided by a non-resident, has been struck down by the Hon'ble High Court of Bombay in the case of Indian National Shipowners Association V/....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ty vested by law in the Respondents to levy service tax on a person who is resident in India, but who receives services outside India. In that case till Section 66A was enacted a person liable was the one who rendered the services. In other words, is only after enactment of Section 66A that taxable services received from abroad by a person belonging to India are taxed in the hands of the Indian residents. In such cases, the Indian recipient of the taxable services is deemed to be a service provider. Before enactment of Section 66A, there was no such provision in the Act and therefore, the Respondents had no authority to levy service tax on the members of the Petitioners- association. The Hon'ble High Court of Delhi in the case of Unitec....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....done at the level of the appropriate lower authorities/ adjudicating authority. (i) Demand of Rs.2,229/- (Sl. No. 4 of the above table): With regard to this demand of service tax of Rs. 2,933/- under the category of GTA Service, I find that the appellants have admitted the said service tax liability of Rs. 2,933/- and they have reportedly paid an amount of Rs.5.221/- along with due interest under the said category of GTA Service. The said payment of service tax has been made by the appellants in terris of Rule 2(1)(d)(v) (a) of the Service Tax Rules, 1994. The appellants have submit ed a copy of the relevant challan of payment of the said amount of Rs. 5,221/- and the same is subject to cross-verification by the appropriate lower authori....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ce Tax amounting to 24,73,524.00 (Rs. 24,23,049.00 as service tax and Rs 50,475.00 as Ed. CESS) should not be demanded and recovered from them under proviso to Section73(1) of the Act, ibid. (ii) Interest at the appropriate rate on the total amount of Service Tax should not be recovered from them under section 75 of the Act, ibid (iii) Penalty should not be imposed upon them under section 76 of the Act, ibid for non payment of Service tax and Education CESS. (iv) Penalty should not be imposed upon them under section 78 of the Act, ibid for suppressing value of taxable service." 2.3 This show cause notice has been adjudicated as per the Order-in-Original, wherein Original Authority have held as follows:- ORDER 1. "I confirm the de....